James A. Senn’s Information Technology, 3rd Edition Chapter 1 Information Technology: Principles, Practices, and Opportunities Senn, Information Technology, 3rd Edition © 2004 Pearson Prentice Hall 1 Objectives • Describe the six characteristics of the Information Age and discuss the role of information technology as the principal tool of the Information Age. • Explain the three primary components of information technology. • Identify the six information-handling functions and the four benefits of information technology. Senn, Information Technology, 3rd Edition © 2004 Pearson Prentice Hall 2 Objectives • Summarize the principles of business reengineering, while emphasizing the potential benefits to people and business. • Discuss the types of opportunities that information technology offers to people. • Describe the responsibilities of people who use information technology. Senn, Information Technology, 3rd Edition © 2004 Pearson Prentice Hall 3 Welcome to the Information Age The Evolution of the Information Age • Agricultural Age: The period up to the 1800s, when the majority of workers were farmers whose lives revolved around agriculture. • Industrial Age: The period from the 1800s to 1957, when work processes were simplified through mechanization and automation. Senn, Information Technology, 3rd Edition © 2004 Pearson Prentice Hall 4 Welcome to the Information Age The Evolution of the Information Age (Continued) • Information Age: The period that began in 1957, in which the majority of workers are involved in the creation, distribution, and application of information. – Knowledge Workers: Workers involved in the creation, distribution, and application of information. Senn, Information Technology, 3rd Edition © 2004 Pearson Prentice Hall 5 Welcome to the Information Age The Evolution of the Information Age (Continued) Senn, Information Technology, 3rd Edition © 2004 Pearson Prentice Hall 6 Welcome to the Information Age The Characteristics of the Information Age (Continued) • An information-based society has arisen. – Information Society: A society in which more people work at handling information than at agriculture and manufacturing combined. • Businesses depend on information technology to get their work done. Senn, Information Technology, 3rd Edition © 2004 Pearson Prentice Hall 7 Welcome to the Information Age The Characteristics of the Information Age (Continued) • Work processes are being transformed to increase productivity. – Work Processes: The combination of activities that workers perform, the way they perform those activities, and the tools they use. – Productivity: The relationship between the results of an activity (output) and the resources used to create those results (inputs). – Effectiveness: The extent to which desirable results are achieved. Senn, Information Technology, 3rd Edition © 2004 Pearson Prentice Hall 8 Welcome to the Information Age The Characteristics of the Information Age (Continued) Senn, Information Technology, 3rd Edition © 2004 Pearson Prentice Hall 9 Welcome to the Information Age The Characteristics of the Information Age (Continued) • Information technology provides the means to rethink/recreate/reengineer conventional business processes. – Reengineering: The reshaping of business processes to remove barriers that prohibit an organization from providing better products and services and to help the organization capitalize on its strengths. – Business Processes: Collections of activities, often spanning several departments, that take one or more kinds of input and create a result that is of value to a company’s customers. Senn, Information Technology, 3rd Edition © 2004 Pearson Prentice Hall 10 Welcome to the Information Age The Characteristics of the Information Age (Continued) Senn, Information Technology, 3rd Edition © 2004 Pearson Prentice Hall 11 Welcome to the Information Age The Characteristics of the Information Age • Success in business is largely determined by the effectiveness with which information technology is used. • Information technology is embedded in many products and services. Senn, Information Technology, 3rd Edition © 2004 Pearson Prentice Hall 12 Welcome to the Information Age The Characteristics of the Information Age (Continued) • Reengineering efforts to attain greater productivity: – Industrial Age - Division of Labor: Separation of work process into component task, with different workers specializing in each of the tasks. – Information Age – Teamwork, Interconnection, and Shared Information. Senn, Information Technology, 3rd Edition © 2004 Pearson Prentice Hall 13 Welcome to the Information Age The Characteristics of the Information Age (Continued) Senn, Information Technology, 3rd Edition © 2004 Pearson Prentice Hall 14 What is Information Technology? Definition • A term used to refer to a wide variety of items and abilities used in the creation, storage, and dispersal of data and information. Its three main components are computers, communications networks, and know-how. Senn, Information Technology, 3rd Edition © 2004 Pearson Prentice Hall 15 What is Information Technology? Definition (Continued) • Data: Raw facts, figures, and details. • Information: An organized, meaningful, and useful interpretation of data. • Knowledge: An awareness and understanding of a set of information and how that information can be put to the best use. Senn, Information Technology, 3rd Edition © 2004 Pearson Prentice Hall 16 What is Information Technology? Definition (Continued) Senn, Information Technology, 3rd Edition © 2004 Pearson Prentice Hall 17 What is Information Technology? Computers • An electronic system that can be instructed to accept, process, store, and present data and information. • Computers come in four sizes: – Microcomputers – Midrange computers – Mainframes – Supercomputers Senn, Information Technology, 3rd Edition © 2004 Pearson Prentice Hall 18 What is Information Technology? Computers (Continued) • Microcomputers: A relatively compact type of computer, the most common of all, easily outsells all other types of computers annually for use in business and at home. • Five types of Microcomputers: – Desktop Computers – Notebook Computers/Laptop Computers – Tablet PCs – Personal Digital Assistants – Palm PCs Senn, Information Technology, 3rd Edition © 2004 Pearson Prentice Hall 19 What is Information Technology? Computers (Continued) • Midrange computers and Mainframes: A computer uses to interconnect people and large sets of information. More powerful than a microcomputer, the minicomputer is usually dedicated to performing specific functions. • Supercomputers: The most powerful of all computers, supercomputers were designed to solve problems consisting of long and difficult calculations. Senn, Information Technology, 3rd Edition © 2004 Pearson Prentice Hall 20 What is Information Technology? Computers (Continued) • Hardware: The computer and its associated equipment. • Program: A set of instructions that directs a computer to perform certain tasks and produce certain results. • Software: The general term for a set of instructions that controls a computer or a communications network. Senn, Information Technology, 3rd Edition © 2004 Pearson Prentice Hall 21 What is Information Technology? Computers (Continued) • System: A set of components that interact to accomplish a purpose. • Information System: A business information system designed to produce the information needed for successful management of a structured problem, process, department, or business. Senn, Information Technology, 3rd Edition © 2004 Pearson Prentice Hall 22 What is Information Technology? Computers (Computers) Senn, Information Technology, 3rd Edition © 2004 Pearson Prentice Hall 23 What is Information Technology? Communications Networks • Communication: The sending and receiving of data and information over a communications network. • Communications Network: A set of locations, or nodes, consisting of hardware, programs, and information linked together as a system that transmits and receives data and information. • Data Communication: The transmission of data and information through a communications medium. Senn, Information Technology, 3rd Edition © 2004 Pearson Prentice Hall 24 What is Information Technology? Know-How • The capability to do something well. • Information technology know-how consists of: – Familiarity with the tools of IT; including the Internet – Possession of the skills needed to use these tools – An understanding of when to use IT to solve a problem or create an opportunity Senn, Information Technology, 3rd Edition © 2004 Pearson Prentice Hall 25 The Principles of Information Technology The Functions of Information Technology Senn, Information Technology, 3rd Edition © 2004 Pearson Prentice Hall 26 The Principles of Information Technology The Functions of Information Technology (Continued) • Capture: The process of compiling detailed records of activities. • Processing: The process of converting, analyzing, computing, and synthesizing all forms of data or information. – Data Processing – Information Processing – Word Processing – Image Processing – Voice Processing Senn, Information Technology, 3rd Edition © 2004 Pearson Prentice Hall 27 The Principles of Information Technology The Functions of Information Technology (Continued) • Generation: The process of organizing information into a useful form, whether as numbers, text, sound, or visual image. • Storage and Retrieval: Storage is the computer process of retaining information for future use. Retrieval is the process by which a computer locates and copies stored data or information for further processing or for transmission to another user. Senn, Information Technology, 3rd Edition © 2004 Pearson Prentice Hall 28 The Principles of Information Technology The Functions of Information Technology (Continued) • Transmission: The computer process of distributing information over a communications network. – Electronic Mail, or E-Mail – Voice Messaging, or Voice Mail Senn, Information Technology, 3rd Edition © 2004 Pearson Prentice Hall 29 The Principles of Information Technology The Benefits of Information Technology Senn, Information Technology, 3rd Edition © 2004 Pearson Prentice Hall 30 The Principles of Information Technology The Opportunities of Information Technology • Helping People • Solving Problems – Problem: A perceived difference between an existing condition and a desired condition. – Problem Solving: The process of recognizing a problem, identifying alternatives for solving it, and successfully implementing the chosen solution. Senn, Information Technology, 3rd Edition © 2004 Pearson Prentice Hall 31 The Principles of Information Technology Information Technology Is All Around Us, Improving Our Lives • Television • Education • Training • Entertainment • Shipping Senn, Information Technology, 3rd Edition © 2004 Pearson Prentice Hall 32 The Principles of Information Technology Information Technology Is All Around Us, Improving Our Lives (Continued) • Paperwork • Money and Investments • Agriculture • Taxation and Accounting • Health and Medicine Senn, Information Technology, 3rd Edition © 2004 Pearson Prentice Hall 33 The Principles of Information Technology Information Technology Is All Around Us, Improving Our Lives (Continued) • Manufacturing • Journalism • Energy • Sports Senn, Information Technology, 3rd Edition © 2004 Pearson Prentice Hall 34 The Principles of Information Technology The Responsibilities of Using Information Technology • To be Informed • To Make Proper Use of IT • To Safeguard Senn, Information Technology, 3rd Edition © 2004 Pearson Prentice Hall 35